Apple Pay is amassing a growing share of card payments around the world, already around 5% of global card payments. And Apple Pay is expected to grow to 10% of such payments within 5 years, posing a threat to rivals such as Pay Pal.
Apple Pay is easy and works with the Apple devices you use every day.Apple Pay accounts for about 5% of global card transactions and is on pace to handle 1-in-10 such payments by 2025, according to recent trend data compiled by Bernstein, a research firm. “There are indeed plenty of reasons to worry that Apple may attempt to disrupt the payments ecosystem,” Bernstein analysts, led by Harshita Rawat, wrote in a research note…
Apple Pay makes money by taking a sliver of each transaction that runs through the device. Users can store their credit and debit cards on the wallet and use it to make contactless payments — beefed up with biometric security — through their phone’s near-field communication (NFC) tech. In the US, contactless payments are forecast to increase to $1.5 trillion in 2024, up from $178 billion this year, according to Juniper Research.
“Apple Pay is indeed one of the long-term competitive threats to PayPal,” Bernstein analysts wrote. For now, PayPal has a commanding lead in the world of online checkouts, and also benefits from network effects that have been building up since the turn of the century. But Apple and PayPal could end up competing for the same turf in the coming years.
MacDailyNews Take: Again, as Apple Card builds upon Apple Pay, and (finally really) incentivizes its use with Apple Card Daily Cash, Apple Wallet, and Apple Pay Cash, Apple has laid the foundation for an Apple Debit Card and, if they desire, Apple Bank (although aversion to heavy regulation may have the good ship Apple steering clear of that iceberg).
Regardless, secure, trusted Apple Pay / Apple Card / Apple Pay Cash / etc. are all more reasons to join and stay within the Apple ecosystem which grows richer in breadth and depth with each new service offering.
That is massive. I love using ApplePay but still find the opportunities limited whether in stores or online.
Remember when Steve said their sales goal with the brand-new iPhone was a mere 1% of the cellphone market?
That’s huge from where and when they started! IMO at least, but it seems like a major success.
Whatever, I’ve never trusted PayPal from its compromised early roots, so would be happy to see their share of this biz crumble.